PRINTER'S NO. 3165
No. 2399 Session of 1998
INTRODUCED BY ADOLPH, HASAY, SAINATO, CHADWICK, MARSICO, SATHER,
GODSHALL, FICHTER, BAKER, FLEAGLE, GEIST, PIPPY, COY, PESCI,
KENNEY, FAIRCHILD, L. I. COHEN, TULLI, ZUG, STERN,
McNAUGHTON, HABAY, TRUE, HERSHEY, GORDNER, MAITLAND,
D. W. SNYDER, C. WILLIAMS, TIGUE, KREBS, NAILOR, ARMSTRONG,
ORIE, FARGO, B. SMITH, HERMAN, BROWNE, BROWN, PLATTS, HANNA,
READSHAW, SERAFINI, MAHER, STEVENSON, MILLER, BOSCOLA,
BATTISTO, ROBINSON, CIVERA, CLARK, E. Z. TAYLOR, DEMPSEY,
MASLAND, ARGALL, RAYMOND, WILT, SCHRODER, VAN HORNE, BARRAR,
BENNINGHOFF, WAUGH, BARD, HARHART, DALLY, SEYFERT AND BOYES,
MARCH 12, 1998
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
MARCH 12, 1998
AN ACT
1 Amending the act of June 29, 1996 (P.L.434, No.67), entitled "An
2 act to enhance job creation and economic development by
3 providing for an annual financing strategy, for opportunity
4 grants, for job creation tax credits, for small business
5 assistance and for the Small Business Advocacy Council;
6 conferring powers and duties on various administrative
7 agencies and authorities; further providing for various
8 funds; and making repeals," further providing for the annual
9 maximum amount of job creation tax credits.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 904 of the act of June 29, 1996 (P.L.434,
13 No.67), known as the Job Enhancement Act, is amended to read:
14 Section 904. Tax credits.
15 (a) Maximum amount.--A company may claim a tax credit of
16 $1,000 per new job created up to the maximum job creation tax
1 credit amount specified in the commitment letter.
2 (b) Determination of new jobs created.--
3 (1) New jobs shall be deemed created in year one to the
4 extent that the company's highest employment quarter during
5 year one exceeds the company's average monthly employment
6 level during the company's base period.
7 (2) New jobs shall be deemed created in year two to the
8 extent that the company's highest employment quarter during
9 year two exceeds the company's highest employment quarter
10 during year one.
11 (3) New jobs shall be deemed created in year three to
12 the extent that the company's highest employment quarter
13 during year three exceeds the company's employment quarter
14 during year two.
15 (c) Applicable taxes.--A company may apply the tax credit to
16 100% of the company's State corporate net income tax, capital
17 stock and franchise tax or the capital stock and franchise tax
18 of a shareholder of the company if the company is a Pennsylvania
19 S corporation, gross premiums tax, gross receipts tax, bank and
20 trust company shares tax, mutual thrift institution tax, title
21 insurance company shares tax, personal income tax or the
22 personal income tax of shareholders of a Pennsylvania S
23 corporation or any combination thereof.
24 (d) Tax credit term.--A company may claim the job creation
25 tax credit for each new job created, as approved by the
26 department, for a period determined by the department, but not
27 to exceed five years from the date the company first submits a
28 job creation tax credit certificate to the Department of
29 Revenue.
30 (e) Maximum.--The total amount of all tax credits approved
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1 in a year under this chapter shall not exceed [$15,000,000]
2 $20,000,000.
3 Section 2. This act shall take effect July 1, 1998.
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